Dr. Adu Anane Antwi, the convener for the Pensioner Bondholders Forum, has voiced concerns regarding the Domestic Debt Exchange (DDEP) programme in Ghana, suggesting that Ghanaians are still experiencing a form of "haircut" despite the government's assurances that the principal remains intact.

In his comments made on Thursday, September 21, 2023, during the Baah-Wiredu Memorial Lecture held in Accra, Dr. Antwi referred to this phenomenon as a "technical haircut," emphasizing that while the principal may remain untouched, there are still financial losses incurred in various areas, contrary to what has been described by the Finance Minister.

"Traditionally, a haircut implies a loss of a portion of your principal. However, in Ghana, we use the term 'haircut,' and I would describe our usage of this term as a 'technical haircut,'" Dr. Antwi explained.

Drawing an analogy, he likened it to a boxing match, stating, "It's akin to a knockout in boxing when your opponent physically knocks you down. But if you're in a fight and, for various reasons, you cannot continue, and the referee intervenes, it is referred to as a technical knockout."

Addressing President Akufo-Addo's assurances that there would be no haircut, Dr. Antwi concurred, saying, "Yes, I agree; there is no traditional haircut because as long as the principal remains intact, there is technically no haircut. However, some argue that any loss of money should be termed a haircut, and since we are losing something, we label it as such."

Dr. Antwi highlighted several factors contributing to what he terms a "technical haircut," including the extended duration of coupon payments, prolonged maturity periods, and reduced interest rates, all of which result in a devaluation of the bondholders' investments, more so when the government is also failing to control inflation.

"So, we have now expanded the definition of a haircut to include any loss, whether it be in the form of reduced interest rates, extended waiting periods, or delayed coupon payments. All of these factors contribute to what we consider our 'technical haircut,'" he emphasised.

Dr. Antwi concluded by noting that any circumstance causing a devaluation of one's investment, such as delayed payments or diminished returns, should be considered a form of "technical haircut" in Ghanaian terms.